chapter08strategicacquisitionandrestructuring介绍.pptxVIP

;THE STRATEGIC MANAGEMENT PROCESS; ; ;TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES;TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES;TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES;TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES;TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES;TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES;Popular strategy in the U.S. for many years Source of firm growth and above-average returns Some believe that MA strategies played a central role in the restructuring of U.S. businesses during the 1980s and 1990s and that they continue generating benefits in the twenty-first century;Heavily influenced by external environment Tight credit markets Political changes in foreign countries’ orientation toward MA During the recent financial crisis, tightened credit markets made it more difficult for firms to complete “megadeals” ( $10 billion) Then U.S. deals picked up in 2011, where “first-quarter deal volume rose 45% to $290.8 billion, compared with $200.6 billion” in 2010;Cross-border acquisitions heighten during currency imbalances, from strong currency countries to weaker currency countries, such as the U.S. Firms use MA strategies to create value for all stakeholders MA value creation applies equally to all strategies (business-level, corporate-level, international, and cooperative);Can be used because of uncertainty in the competitive landscape Increase market power because of competitive threat Spread risk due to uncertain environment Shift core business into different markets Manage industry and regulatory changes Intent: Increase firm’s strategic competitiveness and value; historically returns are close to zero so it rarely works as planned ;MA value creation is challenging GOOD NEWS: Shareholders of ACQUIRED firms often earn above-average returns from acquisitions BAD NEWS: Shareholders of ACQUIRING firms earn returns that are close to zero: In